There are several key parts or elements of a business contract. These elements are included to ensure that all contents of the contract are legally binding. The key business contract parts also prevent misunderstandings that could occur if they were omitted. The key parts of a business contract do not have to be any specific length. Simple, handwritten and even oral agreements can be enforceable.

Parties

The first section of a business contract includes the parties. One party is usually the business that is paying for a particular product or service. For example, a small company might be hiring a marketing consulting firm to help it market a new product line. An owner or manager typically includes her name in the payee spot. The other party is the service company or supplier. This independent representative or businessperson is the one who is expected to complete the work or provide the products.

Agreement

The agreement is legally called the consideration, according to "Entrepreneur" online. The agreement could be only a sentence or two in length. It includes a general statement of what the service or product provider is expected to do for the buyer. The agreement also indicates whether other parties are expected to complete part of the work.

Terms

More detailed information about the deal is included in the terms section of the business contract. This section spells out exactly what services or products are expected from the company doing the work. The terms section also includes the price, details of the payment, the length of the contract and when the services or products will be delivered. Some business contracts also include special terms, such as whether the contract can be canceled for any particular reason. For example, contracts that violate public policy or are not signed voluntarily are voidable, according to "Reference for Business" online. Special terms of a business contract also can indicate whether the buying party may transfer the contract to someone else.

Signatures and Date

The business contract must be signed by both parties. This indicates that the buyer accepts the payment conditions and the seller agrees to complete the specified work. The date usually appears in at least two areas: within the contract where both parties entered their names or business names and next to each parties' signatures. A date also might appear at the top of the contract, indicating when the contract was created. Businesses or lawyers who create business contracts usually include the date the transaction takes place at the top of the contract.